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U.S. President Donald Trump warned this week he could retaliate with a “big tariff” on British goods if the United Kingdom does not repeal its 2% digital services tax (DST) on large online platforms.
Speaking from the Oval Office on April 23–24, 2026, Trump said Washington could “meet that very easily” by imposing tariffs “equal or greater” than the revenue the levy generates.
The DST, introduced by the UK in April 2020, applies to sizeable search engines, social media and online marketplaces and has been a recurring source of tension with Washington; Downing Street has defended the levy as fair and important to Treasury receipts.
The threat comes ahead of King Charles III’s state visit to the United States and after a 2025 UK‑US trade deal left the UK tax unchanged.
Several European countries also have digital services levies, and U.S. officials have previously signalled willingness to use tariffs or export controls against nations that target American tech firms.
The White House did not provide tariff rates; Trump said any measure would exceed what the UK is collecting under the DST.







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